RMD FROM 401K
My client is over 70 1/2 and is retiring in 2015. If he rolls over his 401k to an IRA
can he postpone his required minimum distribution until April 1 2016?
He is already taking RMD from other IRA accounts.
My client is over 70 1/2 and is retiring in 2015. If he rolls over his 401k to an IRA
can he postpone his required minimum distribution until April 1 2016?
He is already taking RMD from other IRA accounts.
Permalink Submitted by Alan - IRA critic on Thu, 2015-03-12 19:10
Once he retires. the current year becomes an RMD distribution year. That RMD must not be included in the IRA rollover, although if he delays the rollover until 2016, he can also delay the 2015 plan RMD until as late as 4/1/2016. If the IRA rollover is done in 2016, then both the 2015 and 2016 401k RMDs must be distributed and not included in the IRA rollover. If the RMD is rolled over to an IRA in error, it must be treated as an excess regular IRA contribution and corrected as such.
Permalink Submitted by EDWARD HELM on Thu, 2015-03-12 21:01
Thank you very much!